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					Editor’s Focus

Editor’s Focus

中 国 汽 车 中 国 汽 车
ISSN 1002-0918 CN 12-1184/U Sponsor and publisher China Automotive Technology & Research Center (CATARC)

Who will become China’s Toyota?
A very powerful rival is more often than not the best teacher. Toyota is an example of this for locally owned auto manufacturers. What lies behind Toyota’s magic success is the power of its

EDITORIAL DEPARTMENT Chief editor: ZHANG Jianwei Vice-chief editor: ZHANG Jinhua ZHENG Heyue Editor: GENG Chaojie LIU Di Editorial Consultant: John BOLEY

cultural penetration, highlighted by lean production, people -oriented design details, its global strategy for hybrid cars and its focus on the environment. So which one will be the next Toyota in China concerning the culture, technology, talent and products? It would be easily possible for Chery to become the ‘Toyota of China’ in the aspect of finance, but Chery also has weaknesses as well, such as serious local vested interests, the intervention of other relevant groups that are long-established, and limited space for talented people to grow. In recent years, many new product designers have left Chery for more money or a better working environment. Poor enterprise culture cannot sustain the power of development. Geely is among privately owned local makers who claimed a battle against the world’s top three, as well as the poster boy of China’s Toyota. However, the ambitious group lacks a working team, in particular those growing up under the shadow of its boss, together with a think tank sharing the same thoughts. A philosophy of “fostering talent takes a hundred years” is necessary for it to compete with Toyota.

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Thanks to a soaring market share, the low-key BYD has become a rising star, which can be attributed to its sound employment system. A high caliber team has supported the rise of the business over the past 10 years or so. In terms of the products, a battery-based BYD has stored a lot for producing clean energy vehicles and it has jumped on the bandwagon of the environmental protection campaign in the world. The diligent logic of developing itself is considered a sound base for its rising popularity. Thus BYD seems most likely to become the next Toyota. Perhaps one day Geely, Chery and BYD need not admire Toyota. Instead, they will have created individually distinct and powerful businesses. ☺

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Contents

CONTENTS

Editor’s Focus Who will be China’s Toyota? …………………………………………………………………………………………… (Ⅰ) News …………………………………………………………………………………………………… (01)

Special Report

To speed up upgrading auto products, promoting energy efficiency and emitting fewer pollutants ……………………………………………………………………………………………………………………… (04) China stands at a historical point of industrialization and urbanization, which means increasing appetite for energy. The expanding economy and improving living standards demand great and intensive energies … On the technical developments of high-end big tonnage light trucks ………………………… (06)

The current situation and trend of the serving market of passenger vehicle transmissions in China ……………………………………………………………………………………………………………………………… (07) The transmission is a key assembly linked to the dynamic, economy and comfort of a vehicle. Over the recent years, the passenger car transmission market has been developed rapidly, and its market size in 2006 reached a total of 30 billion yuan, with up to 18 billion yuan worth products being produced in China. The increase over the past 5 years was 25 percent a year on an average.

Statistics Auto Production and Sales of Major Manufacturers by Type in Oct. 2007 ……………………………………………………………………………………………………………… Auto Production and Sales of Major Manufacturers in Oct. 2007 ……………………………………………………………………………………………………………… Car Production and Sales by Model in Oct. 2007 ……………………………………………………………………………………………………………… Share of Production and Sales of Big Five in Oct. 2007 ……………………………………………………………………………………………………………… Auto Production and Sales by Type in Oct. 2007 ……………………………………………………………………………………………………………… Engine Production and Sales of Selected Engine-makers in Oct. 2007 ………………………………………………………………………………………………………………

(13) (16) (17) (21) (22) (22)

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NEWS
efficiency reaches advanced international level, it will

Policy, standard, regulation
China to enact law on circular economy The draft law on recycling economy of China, made to boost sustainable development through energy saving and reduction of pollutant discharge, was deliberated for the first time by lawmakers. The draft law was submitted to China's top legislature for first reading. The draft stipulates governments at all levels should make plans on the development of circular economy, establish systems to control energy use and pollutant emission, strengthen management on companies with high energy and water consumption, make policies to divert capitals into environmentally friendly industries. The draft also introduces reward and punishment systems for companies, encouraging them to develop recycling economy and making them responsible for the recycling of their products. "China has been facing serious environmental and resources problems during the economic development since the 1980s, which were mainly caused by the low resources efficiency", said FENG Zhijun, vice chairman of the NPC Environmental Protection and Resources Conservation Committee. He said the average energy consumption per unit product for high-energy-consuming industries, such as steel, electric power and cement in China was 20 percent higher than the advanced international level. FENG said the development of recycling economy would provide new resources for economic development, effectively cut pollutant emissions and increase economic benefit. If a steel factory, with a yearly output of eight to 10 million tons, reclaims all of the remaining heat and flammable gas, the energy saved is able to run a 800,000-kilowatt power station, and if China's energy

reduce the emission of sulfur dioxide by 4.5 million tons every year, he said. "It's essential to establish a legal system to combine energy saving and environmental protection with economic and social development to ensure a sustainable development," he said. The committee started to draft out the law on recycling economy in December, 2005 and collected more than 1,000 suggestions from relevant government departments, colleges, and local people's congresses this year to perfect the draft.

Fuel and energy
Low emissions fuel cell buses to debut in Shanghai Starting in 2009, Shanghai will have on its roads a new fleet of hybrid clean energy buses. This is under a fuel cell bus commercialization project between the UNDP, and the Ministry of Science and Technology. The project in Shanghai is actually a continuity of the one started in 2000 in Beijing, which brought three fuel-cell buses onto the Beijing streets. Kiskan Khoday, UNDP Assistant Country Director in China, says the Phase 2 project in Shanghai is trying to establish a national road map for clean-energy vehicles for future China. According to the local government, the clean energy buses will also serve the 2010 World Expo in Shanghai. As world's oil supply might be exhausted in 50 to 60 years, engineers around the globe are working on producing cars using alternative energies for the future. Currently, major substitutes include hydrogen fuel cell, biodeisel, liquified petroleum gas and electricity, all of which have their pros and cons. Experts and auto manufactures have reached a common ground that for the Chinese market or any market around the world, the solution for sustainable

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News

road mobility is not one and only. Kenneth Hsu, vice president of Ford Motor China, made a remark at a recent press conference. "The solution won't be the one and only for China. First of all, none of these solutions is perfect. Secondly, the situation varies from place to place and different people have different preferences. Last but not the least, some of the technology is still quite expensive to ordinary consumers. So our discussion can never concentrate on a single solution." Coal and oil consumption are the two primary sources of air pollution in China, constituting 90% of the country's total energy usage. However, despite greenhouse gas emission and other air pollution, car owning rate will continue to rise with the increase of living standards in China.

due to be released in 2010. Capacity will be lifted to 200,000 units by 2010. Guangzhou Auto said the new base would be its major platform for developing its own models, engines and transmissions. The total investment would be funded through its profits, bank loans, cooperate bonds as well as a possible initial public offering, according to ZHANG Fangyou, chairman of Guangzhou Auto. The company will also focus on producing cars that are more eco-friendly, and energy efficient amid record high oil prices. The car maker has offered a sneak preview of three concept cars including a four-door coupe, an AHEV crossover using hybrid electric technology, and the AEV concept car, an advanced electric vehicle. Guangzhou Auto also plans to cooperate with other car makers, design studios and suppliers to accelerate development.

Technical express
Guangzhou Auto develops models in advanced R & D Guangzhou Automobile Group Corp announced plans to spend 6.8 billion yuan on developing its self-owned vehicles, the latest state-owned car maker hoping to transform into a globally competitive company. The nation's fifth-largest auto maker inaugurated its new base recently, which includes a 3.8 billion yuan production plant in Guangzhou and a 300,000 square meter advanced research and development center costing three billion yuan. "It's necessary to have self-owned cars to join the competition against overseas peers amid the rapidly growing Chinese market," said ZENG Qinghong, general manager of Guangzhou Auto. "Cooperation is just one way for development but core competence is a must-have if you want to be a global player," he added. The new factory is designed to turn out 100,000 cars annually with its first model being uppermedium sedan,

Conference
The first China synfuels summit 2007 to convene The gravity of China's energy situation has drawn much concern of late. For this reason, the development and utilisation of new energy sources is not only inevitable but imminent. On December 6, elite government, business and academic personnel, concerned with the development of energy resources, will gather in Beijing for the first China Synfuels Summit. Organized by the China Decision Makers

Consultancy and Energy of China, under the auspices of the Energy Research Institute of National Development and Reform Commission, the two day conference will see over 200 industry professionals exchange ideas on China's energy outlook, especially that of synfuel---a nascent industry. China's increasing demand for energy, along with

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high and unstable oil prices, and the nation's growing awareness of carbon emissions, have pushed domestic energy use and sustainable development to the top of the government's political agenda. As well as other alternative and renewable energies, synfuel, which refers to any liquid fuel obtained from coal, natural gas or biomass, is set to boom as a strategic option to mitigate the structural imbalances of China's energy sector, and also as a commitment to emissions reductions.

made great efforts on enlarging international market. Following several models' well selling in Egypt during the past years, the introduction of the Splendor is another major step for the Chinese car company to advance its marketing strategy in the Middle East and Africa, said LIU. Farid El-Tobgui, executive board member of

Bavarian Auto Group in Egypt, which is the importer and assembler of Brilliance cars, said Chinese car sales in Egypt have increased greatly in 2007 by 255 percent compared to the same period in 2006.

Market
Sinotruk IPO yields US $1.2 B Sinotruk (Hong Kong) Ltd raised US$1.2 billion) in a Hong Kong initial public offering, said two people involved in the sale. Sinotruk sold 702 million new shares at HK$12.88 each, the top of the range marketed to investors, said the people. The company will use the funds raised to build new plants and improve technology as a construction boom boosts commercial vehicle sales in China. Heavy-duty truck sales rose 65 percent in the first 10 months of the year, according to WANG Mingcun, an analyst at TX Investment Consulting Co in Beijing. Heavy-duty truck sales in China may rise 20 percent next year, WANG said. Sinotruk will also benefit from ownership of the group's profitable engine plant, she added. Brilliance car debuts in Egyptian market Chief of Brilliance announced that one more brand model of his company came into the Egyptian market for the first time as an important step forward for the company's international marketing strategy. LIU Zhigang, President of Shenyang Brilliance Jinbei, made the announcement at a press conference held in the Egyptian capital of Cairo, saying his company has

More and more Egyptians prefer to buy Chinese cars for reliable quality and improved after services, said Farid, adding the company will introduce more models from the Chinese car maker in 2008. Chery expects record car export Chery expects a record car export of more than 100,000 units after a 2.2-fold increase in export in the first three quarter of 2007. The company exported 77,000 cars worth 530 million U.S. dollars in the first nine months. It would double that of 2006 to reach 100,000 with a sales volume of 700 million U.S. dollars, said the Bureau of Commerce of Anhui Province. Chery is capable of producing 400,000 cars, 400,000 engines and 300,000 transmissions a year and plans to raise its annual output to one million cars by 2010. The company, which operates seven plants in six other countries, including Russia, Uruguay, Indonesia and Egypt, would build another 14 overseas plants by 2010. It has established ties with Italy's Fiat to supply 100,000 engines a year for Fiat cars made in China and abroad. Chery has also signed a deal with Chrysler to export Chinese made cars to the United States and Europe. The two companies will jointly develop new products based on Chery's small car platforms. ☺

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Special Reports

Special Reports

To speed up upgrading auto products, promoting energy efficiency and emitting fewer pollutants
LI Wanli Industrial Policy Dept, the State Development and Reform Commission

China stands at a historical point of industrialization and urbanization, which means increasing appetite for energy. The expanding economy and improving living standards demand great and intensive energies. China’s rapidly developed auto stock is consuming great energy and it needs to import more and more oils. Series problems concerning safety the and energy, varied transportation, environment,

standards since 2001 and the enacted or published national documents include Test Methods of Fuel Consumption Level for Light Vehicles, Limit of Fuel Consumption for Passenger Vehicles, and Limit of Fuel Consumption for Light Commercial Vehicles. Based on the above-mentioned standards, the NDRC published two groups of the tested fuel levels of vehicles in 2006 and 2007 respectively. The second document expelled 444 models from the Bulletin. The documents have played a role of positively guiding the market orientation. The recently formulated Energy Conservation Act states that, a fuel consumption level needs to be formulated for vehicles of profit-making use. We are going to further improve the fuel limit standards under the framework of the Bulletin, by establishing systems of fuel level declaration, publication and the marks. 1.1.2 To build an environment for the execution of the emissions standards

development strategies for a vast land need to be solved, for the sake of sustainable development. Among the tackling things are the formulation of the policies and execution of them. Specifically, the policies include rules conventional and new energy vehicles and exit for the out-of-date products. And the possible technical approaches need to cover the upgrading of conventional technologies, multi use of the fuels and innovations of vehicles. 1. Policies 1.1 With conventional fuel vehicles: formulation and execution of fuel consumption of the level; an for environment for the execution of the emissions standards; formulation threshold environmental protective and economical vehicles, including tax breaks. 1.1.1 Fuel consumption level and the bulletin The relevant government departments have carried systematic researches into the policies, rules and

The national compulsory limit of the third stage program (an equivalent of Euro III) began to apply on the newly approved 3.5 ton or up heavy-duty vehicles and 3.5 ton or lower light trucks, on Jan 1, and July 1, 2007, respectively. China is 8 years later than Europe in applying Euro III standard. And concerning the time used from Euro 0 to Euro III, China needs barely 17 years, compared

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to 27 years with European countries. 1.1.3 Conditions of energy efficient and

d. The businesses and products will be ruled by the Bulletin. e. Specific rules will be made concerning the capabilities of production, design, consistency, sales and the aftermarket. The published rule draft has received nearly 80 pieces of comments since its coming in March 2007. The amended document took effect on Nov 1, 2007. 1.3 Policies of eliminating out-of-date products; improvement of the policies of end-of-life products; remanufacturing of auto parts; preliminary argument of the recycling of vehicles. 1.3.1 Standard of end-of-life products China’s rules for end-of-life vehicles took effect many years ago and the preliminary work of amendment has been finished. Main features: to reinforce the imperative of end-of-life vehicles; non-business and working vehicles can be used as soon they can pass the tests; the technical conditions and safety, energy efficiency and environmental protection specifications will play greater roles in determining the use of a vehicle, instead of the accumulative mileage. 1.3.2 Cautiously carry out the remanufacturing of auto parts. Before the relevant laws are amended, the test remanufacturing will be done inside the auto industry and their affiliated sales outlets, nor will the imports be allowed. 1.3.3 To do the preliminary argument of recycled vehicles In 2004, China implemented the GB/T19515-2004 /ISO22628:2002 on the definitions and calculation methods. In 2006, the relevant government departments issued series documents on each chain of the job, as

environmental protective vehicles and tax breaks Energy category of efficient, the new energy List of and the small

displacement economical cars entered the incentive Guiding Industrial Restructuring of the NDRC in 2005, and three-wheel and low-speed agricultural vehicles began to be curbed in the same year. The NDRC organized a study on the incentives of economical vehicles in Oct 2006, followed by studies on the definitions and conditions of the vehicles, which are close to a completion. We are also working with the financial and taxation authority on the tax breaks. 1.2 Policies on new energy vehicles Since 1995, the Ministry of Science and Technology has been busy contracting all relevant sides across China to carry out their jobs and series new energy vehicles have been developed. Some of the vehicles are ready for mass production now. Because most new energy vehicles adopt the cutting edge technologies, there are different assessment systems in the world, in the aspect of the technologies, production approaches, parts supply, and in some cases, poor conditions with the aftermarket and infrastructure. A new governance system is needed. This is why the production entry rules of new energy vehicles are necessary for the segment. Features of the governance rules a. Definition. They refer to the HEV, electric (BEV, including solar power), FCEV and other new energy powered models (such as ultra capacitor and DME). b. The rules are expected to set 3 different objectives for the phases for the initiative, development and harvest. c. An expert committee will oversee the technical phase identification and propose other conditions.

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Special Reports

well as a timetable. Experience in EU and Japan shows that the super system involves almost all sides of the auto industry and it calls for a lot of works. 2. Adoption of the technical approaches 2.1 To develop and popularize advanced ICE and hybrid vehicles; to develop composite ignition technology; and promote the reform of the dynamics. 2.2 To develop and apply fuels based on gas, coal and biomass; to diversify the resources of traffic

energy; to develop mixed (blending) fuels; and build and transform the infrastructure step by step. 2.3 To develop, demonstrate and industrialize fuel cell and electric cars; to develop the mixed technologies of the output power; to promote the technical innovations and leaping forward of new energy and electric powered vehicles. (A speech at the Clean Vehicle Technology

Innovations Forum held on Oct 25, 2007)☺

On the technical developments of high-end big tonnage light trucks

Over the recent years, while upgrading their products to satisfy Euro III emissions standards, the leading commercial vehicle producers are trying to improve their products in an all round manner. These new models feature high-end, electronics-oriented and mid-sized. 1. Exterior. Tending to be mid-sized, concerning the cab, body, dynamics, loading power and maximum speed. 2. Equipment. High-end trucks have introduced a lot of features with cars, like integrated CD player and A/C controller. Others include auto windows, power steering, independent front suspension, central locks and rear end sensors. 3. Dynamics. Up to now, some trucks are equipped with supercharged and inner cooling diesel engines, which can improve ignition and fuel economy performance. What is more, along with the upgraded standards

from the central authority, the future light trucks will not only compete the dynamics, but also the fuel consumption level and emissions. The Iveco SOFIM engine helps its emissions meet Euro III. Other comfort equipment includes power clutch and steering and A/C. 4. Chassis. Light weight body helps increase the loading of the trucks. Some leading trucks adopt firm frame and front-rear end axles. These techniques save the trucks from trembling, floating and other uncomfortable conditions. 5. Active safety. Some trucks are monitored by electronics parts and some are equipped with 4 wheel braking discs, which provide quick and stable brake, lower noise level and easy maintenance. 6. Passive safety. The broad use of safety belt and air bags helps reduce the damage to people in accidents. ☺

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The current situation and trend of the serving market of passenger vehicle transmissions in China
ZHU Xianglei, WANG Jing, CATARC

The transmission is a key assembly linked to the dynamic, economy and comfort of a vehicle. Over the recent years, the passenger car transmission market has been developed rapidly, and its market size in 2006 reached a total of 30 billion yuan, with up to 18 billion yuan worth products being produced in China. The increase over the past 5 years was 25 percent a year on an average. In nowadays China, locally made manual

has targeted the innovations of the core technologies of transmissions, including CVT, AMT, AT and DCT. 1. Market space of passenger vehicle

transmissions Since 2002, China’s passenger vehicle market has experienced a soaring growth during 2002-2004 and an adjusting growth period during 2005-2006. A total of 5.1485 million passenger vehicles was sold in 2006, an increase of 29.57 percent. The top 9 months of 2007 saw 4.5829 million passenger vehicles sold, a year on year increase of 24.74 percent. Refer to Table I and diagram I for the growth rates during 2005-2007 on a monthly base.

transmissions are supporting the passenger cars, but automatic transmissions, which demand highly on the design, manufacturing and techniques, are mainly introduced from the advanced countries. A specific program for the auto parts industry during 2006-2010

Table I A monthly based sales record of passenger vehicles from 2005 to Sept 2007 ( 10,000 units ) Year 2005 2006 2007 Jan 24.31 41.89 55.25 Feb 21.35 34.45 41.77 Mar 35.58 48.60 56.70 April 33.70 46.84 54.58 May 31.74 39.36 48.85 June 37.55 39.64 51.19 July 31.56 33.26 45.72 Aug 29.24 37.80 48.13 Sept 35.40 45.57 56.10 Oct 31.99 41.00 - Nov 39.36 49.97 - Dec 45.58 56.48 - Total 397.36 514.85 458.29

Source: Autoinfo Diag I 10,000 units
60.00 50.00 40.00 30.00 20.00 10.00 0.00 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Sales changes by month of passenger vehicles from 2005 to Sept 2007
2005 2006 2007

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The service range of the transmissions basically equals that of the vehicle market, thus the market space can be considered that for the serving market. 1.1 Market space of manual transmissions In 2006, passenger vehicles equipped with a manual transmission sold up to 3.5454 million units, a year on year increase of 20.54 percent. And during the

top 9 months in 2007, vehicles equipped with a manual transmission sold up to 3.0865 million units, a year on year increase of 21.7 percent. Table II and diagram II list the changing situations of the segment from 2005 to Sept 2007. In China, the market has been dominated by made in China products and the growing sales mean widening space for the segment.

Table II A monthly based sales record of passenger vehicles equipped with a manual transmission from 2005 to Sept 2007 ( 10,000 units ) Year 2005 2006 2007 Jan 19.32 30.24 38.39 Feb 16.97 24.89 29.96 Mar 27.54 34.59 40.45 April 25.25 33.16 36.47 May 24.14 27.76 33.97 June 27.31 26.74 34.00 July 22.02 21.57 28.94 Aug 20.66 24.43 30.45 Sept 25.97 30.23 36.02 Oct 23.70 28.28 - Nov 28.20 34.45 - Dec 33.06 38.20 - Total 294.13 354.54 308.65

Diag II

Sales changes by month of MT passenger vehicles from 2005-Sept 2007
2005 2006 2007

10,000 units
45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Jan Feb Mar April May June July Aug

Sept

Oct

Nov

Dec

1.2 Market space of passenger vehicles equipped with an automatic transmission 1.2.1 Sales of passenger vehicles equipped with an automatic transmission Passenger vehicles equipped with an automatic transmission sold up to 1.6031 million units in 2006, an increase of 55.31 percent over 2005. The sales during the top 9 months of 2007 were 1.4965 million units, a year on year increase of 31.5 percent. Refer to Table III and Diagram III for the changes from 2005 to Sept 2007. Table III A sales record of vehicles equipped with an automatic transmission from 2005 to Sept 2007 ( 10,000 units ) Year 2005 2006 2007 Jan 4.99 11.65 16.86 Feb 4.38 9.56 11.80 Mar 8.04 14.01 16.25 April 8.45 13.68 18.12 May 7.60 11.61 14.88 June 10.24 12.90 17.20 July 9.55 11.69 16.78 Aug 8.58 13.36 17.68 Sept 9.44 15.34 20.08 Oct 8.29 12.71 - Nov 11.16 15.52 - Dec 12.52 18.28 - Total 103.22 160.31 149.65

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Special Reports Diag III
10,000 units 25.00 20.00 15.00 10.00 5.00 0.00 Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Sales changes by month of AT passenger vehicles from 2005-Sept 2007
2005 2006 2007

1.2.2 Importation of automatic transmissions of passenger vehicles A total of 1.2612 million units of automatic transmissions was imported in 2006, an increase of 80.62 percent over 2005. The importation during the top 9 months of 2007 was 1.3047 million units, a year on year increase of 43.8 percent. Refer to Table IV for the situations during the time period. Table IV A comparison of the production of vehicles equipped with an automatic transmission and importation of automatic transmissions over the recent 3 years ( 10,000 units ) First quarter Year 2005 2006 2007 Vehicle production 16.88 34.83 46.39 Transmission import 11.06 25.42 37.03 Second quarter Vehicle production 26.12 40.46 51.20 Transmission import 15.69 31.13 45.12 Third quarter Vehicle production 29.23 41.40 54.54 Transmission import 19.93 34.18 48.32 Fourth quarter Vehicle production 30.69 44.40 - Transmission import 23.15 35.39 - Vehicle production 102.92 161.08 133.06 Total Transmission import 69.83 126.12 130.47

Diag IV A comparison of the import of AT and AT vehicles in the past 3 years
10,000 units 60.00 50.00 40.00 30.00 20.00 10.00 0.00 First quarter, 2005 Second quarter, 2005 Third quarter, 2005 Fourth quarter, 2005 First quarter, 2006 Second quarter, 2006 Third quarter, 2006 Fourth quarter, 2006 First quarter, 2007 Second quarter, 2007 Third quarter, 2007 Vehicle production Transmission import

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Special Reports Data show that China’s most automatic transmissions have been introduced from Japan, accounting for 68.21 percent of the total, followed by those from Germany, the US, Korea, France and Canada. The total import from the above-mentioned 6 countries is 1.2606 million units, or 96.62 percent of the total. Table V Key AT export countries in the top 9 months of 2007 Order 1 2 3 4 5 6 Countries Japan Germany USA Korea France Canada Numbers ( unit ) 889,945 106,315 86,183 78,489 55,922 43,771 1,260,625 1,304,667 Portion % 68.21 8.15 6.61 6.02 4.29 3.35 96.62 100.00

Subtotal of 6 countries Total import

2. Serving relations of the passenger vehicle transmission segment 2.1 Manual transmissions The suppliers can divide into two groups: one is those like FAW, Dongfeng and SAIC which maintain their own suppliers, and the other is those independent serving suppliers. Refer to Table VII for the names of these suppliers and their serving relations with vehicle makers. Table VI Serving relations of key passenger vehicle transmission suppliers Transmission producers Products types Serving businesses Beiqi Beiqi Foton 035 037 038 5M 5G (Y) Soueast HFJ Brilliance Jinbei Tianjin FAW Toyota Hebei Zhongxing Great Wall BS10-2/D, BS13-4,BS14R, BS13-4,DABS10 HFJ Hefei Changhe Shenyang Brilliance Jinbei Soueast 4G63 Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., 4G64 Ltd. 4G69 Chongqing Qingshan Industry MF524, MF514, Dongfeng Liuzhou Hunan Changfeng Beijing Benz Daimler DFAC Key car models BJ2025CBD6, BJ6430WBB3 BJ6476B1DDA-1, BJ6526B1DDA-1 Delica, Freeca Songhuajiang HFJ6420AE Hiace, Granse TV7160DLX, TV7161GLMD, TV7181GLX-iMBD, TV7181GLX-SMD BQ6480G-G3 Safe, Saiying Songhuajiang HFJ6420, HFJ6391AE3, HFJ6370U3 CH5026XQCHE3, CH6390H Jinbei Freeca Futurer Liebao Outlander EQ6360LF

TAGC

Harbin Dong’an

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Special Reports Co.,Ltd. MF508A, Nanjing Chang’an MF508B, MF406, MR406A, Hebei Chang’an MR406B Chongqing Chang’an JAC JC630, JC520TM7A, JC530T4B, F5M42-2-V4B2-B, R5M21-GEA5AD, R5M23D Jiangling Beiqi Foton Shenyang Brilliance Jinbei Dongfeng Liuzhou Quanzhou Nissan Beiqi Beijing Gear Works BC184D, 255 Series Shenyang Brilliance Jinbei Nanjing Iveco Liuzhou Wuling Great Wall Chengdu Xindadi SC5M4D-C, SC5M2D, SC72A3, 2P Shanghai VW Hunan Changfeng Shanghai GM Shengyang Brilliance 01V.J, 6HP-21, 5HP-19-FL Brilliance BMW Shanghai VW Chang’an FAW VW VWTS Shanghai VW Chongqing Lan Dai Industry Co., 501, 7A, 474 Ltd. CA5T70-D31C1, CATS5-17Y1 FAW Jilin Auto Great Wall Dongfeng Yueda KIA Beijing Hyundai Chery Auto Hangzhou Iveco QR512 Shanghai Maple Nanjing Iveco Liuzhou Qingshan MR506A SAIC GM Wuling DAIHATSU CA6410, CA7130, CA7150 CC6460KM42, CC6500HK40, CC6590SW22 YQZ7162EF, YQZ7181AEF BH7163MW, BH6430AW SQR7110S12 Maple Iveco LZW6360FV Chongqing Lifan Chongqing Chang’an Beiqi Changchun Gear Plant, FAW POLO LF7130/CNG, LF7160L1 Chang’an BJ2024CJE

SC6335, SC6362A, SC6362B SC6335A, SC6335D SC6363CNG, SC7102B HFC7240C, HFC7200CG3 Jiangling BJ6526B1DVA-1, BJ6476B1DVA-1 SY7181USB, SY7182US LZ6470AD1S, HFC7240C ZN6493H2S 2020 Jinbei Iveco Wuling CC6590SW01, CC6460KM25 RX6405 Santana SVW7182GQi, SVW7182GQD, PASSTA, POLO LiebaoCFA6501A, CFA6501B Excelle, BUICK Jinbei SY6492XS1H, BMW7251DL (BMW525Li), BMW7301BL (BMW530Li) Passat SVW7183PJi, SVW7183PJD Mini bus Bora

Jiangxi Jiangling Gear Co., Ltd.

Gear plant, SAIC

Shanghai ZF

Chongqing Changan Jinling Automobile Parts Liability Co., Ltd.

Zhejiang Zhongma Beijing MOBIS Beijing Hyundai MOBIS

ZM001MF M5BF2 M5BF2

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Special Reports 2.2 The serving situation of passenger vehicle automatic transmissions The segment needs around 300,000 automatic transmissions a year, which come from joint ventures. Geely is the only one putting its self-owned transmissions into industrial production. The transmission was introduced at the beginning of 2005 and 6,000 cars were equipped a year. Table VII Key producers Aisin Seiki Serving relations of key passenger vehicle automatic transmission producers Key models AQ250 Shanghai VW AW Japan 82J10, Ss (80-40LE) JATCO FPO, RS5F91R, RE4F03B U341E, U340E FNR5 A4Q Jiangxi Changhe Chongqing Chang’an Yuejin JATCO Japan Dongfeng Motor Octavia SVW7166BSD, CH6391A1 SC7133B MG NJ7250ZL, NJ7250ZT LIVINA DFL7163AC, Tiida (Yida) DFL7161AC, Tiida (Qida) DFL7160AC TV7160G, TV7161GL, TV7181GL-i, TV7181GLX-iA, TV7181PREMIUM Mazda CA7202AT DAIHATSU CA6410A1, CA7150A Zhonghua SY7181UZB, SY7182UZB Passat SVW7183QJD, SVW7183QJi Chrysler BJ7270CX Buick SGM7281AT, SGM7363AT Chery SQR7200B11T6 BMW7251DL (BMW525Li), BMW7301BL (BMW530Li) Passat SVW7183PJi Crown, Reiz YQZ7162AEF, YQZ7181AEF HQ Car makers FAW VW Japan Key car models Magotan FV7187TATE

Country

TOYOTA MOTOR CORPORATION Mazda Daihatsu ZF GETRIEBE GMBH Kassel D-C Strasbourg Renault

Japan Japan Japan

Tianjin FAW TOYOTA FAW FAW Jilin Auto Shenyang Brilliance Jinbei Shanghai VW Beijing Benz Daimler Shanghai GM Chery Brilliance BMW Shanghai VW

Germany 4HP-20 Germany 01W.V USA France France 42RLE 5L40E QR425AHA 01V.J, 6HP-21 FR6 (B750/305K) F4A42, A4AF3 JL-ZA142

Shanghai ZF

China

TAW Beijing MOBIS Geely

China China China

FAW Toyota Dongfeng Yueda KIA Geely

3. The future trend of China’s passenger vehicle transmissions Data from the CSM show that in 2007, the market share of AT in the passenger vehicle market (including cars, SUVs and MPVs) will be 36 percent, and by 2013 the portion will as high as 45 percent. In the “specific development program of China’s auto industry for the 11th 5-year period”, CVT, AMT, DCT and AT are mentioned. In the near future, MT will dominate the market, with the market share inclined. AT and dual-mode transmissions will find more use and DCT is likely to enter the domestic market. ☺

12

November 2007

Statistics

Statistics
Auto Production and Sales of Major Manufacturers (by Type) in October, 2007
In units Production Manufacturer Heavy Truck (10) China National Heavy Duty Truck Group Co., Ltd. Baotou North-Benz Heavy-Duty Truck Co. ,Ltd. Anhui Jianghuai Automobile Co., Ltd. Dongfeng Motor Corp. Hubei Tri-Ring Special Truck Co., Ltd. Fujian New Longma Automobile Co., Ltd. China FAW Group Corp. Shannxi Automobile Group Co., Ltd. Jinggong Zhenjiang Automobile Manufacture Co. Ltd. Beiqi Foton Motor Co., Ltd. Medium Truck (8) Dongfeng Motor Corp. Chengdu Wangpai Motor Co., Ltd. China FAW Group Corp. Anhui Jianghuai Automobile Co., Ltd. Ziyang Nanjun Motor Industrial Group Corp. Chengdu New-Dadi Co., Ltd. Shannxi Automobile Group Co., Ltd. Hubei Tri-Ring Special Truck Co., Ltd. Light Truck (12) Beiqi Foton Motor Co., Ltd. Anhui Jianghuai Automobile Co., Ltd. Dongfeng Motor Corp. Shandong Kaima Co., Ltd. Jiangxi Jiangling Automotive Holding Co., Ltd. Great Wall Motor Co., Ltd. Nanjing Automobile (Group) Corp. 24,684 7,397 5,117 5,543 3,747 4,651 2,435 2,504 2,533 3,308 1,551 3,093 6,504 3,091 2,896 2,352 1,996 1,763 927 272,804 90,805 61,053 52,261 47,970 45,718 34,756 25,826 25,124 25,018 23,540 22,484 66,590 32,268 30,208 24,647 14,315 14,061 13,919 15.23 14.57 8.67 37.57 9.63 14.54 -2.81 18.43 30.03 6.99 56.9 7.86 1.7 10.32 47.15 -27.18 -0.26 21.66 25,827 8,493 5,783 5,459 4,189 4,637 2,918 3,394 2,555 3,210 1,546 2,684 6,357 2,976 2,578 2,612 1,761 1,768 1,011 268,619 90,990 63,258 51,334 48,931 45,346 34,401 25,559 26,395 25,127 23,520 22,497 64,521 33,503 36,415 23,051 14,203 14,826 13,665 12.53 17.63 17.19 34.04 4.86 12.5 -1.47 7.1 37.41 8.53 56.14 13.92 3.19 37.58 40.21 -25.24 8.52 18.99 1,517 1,524 630 1,038 1,347 424 200 387 18,371 16,345 12,486 11,580 10,254 5,501 5,148 5,047 3.14 28.29 -51.32 -16.07 326.1 -28.99 47.92 1,879 1,575 662 1,077 1,350 433 360 463 18,363 16,932 12,889 11,530 10,248 5,414 5,390 4,975 -8.09 37.65 -51.48 -15.43 332.08 -20.52 52.14 2,316 538 1,012 777 460 418 218 128 287 76 25,133 10,519 8,383 6,342 5,224 4,727 4,517 3,204 2,733 1,884 135.39 59.6 234.12 30.01 96.76 1.44 -12.05 156.38 27.9 2,886 632 1,070 719 462 418 236 173 247 61 26,151 10,093 9,061 6,007 5,074 4,727 4,501 3,338 2,646 1,806 136.57 64.54 292.42 12.89 106.34 -25.66 -11.18 149.39 18.27 Oct. Accumulated Change, % Oct. Sales Accumulated Change, %

Shengyang Jinbei Automobile Co., Ltd.
FAW- Hongta Yunnan Automobile Mfg. Co., Ltd. Zibo Auto Works Ziyang Nanjun Motor Industrial Group Corp. Beijing Automobile Works Mini Truck (7) Chana Automobile (Group) Liability Co., Ltd. SAIC-GM Wuling Automobile Co., Ltd. Hafei Motor Co., Ltd. Hebei Zhongxing Automobile Co., Ltd. China FAW Group Corp. Jiangxi Changhe Automobile Co., Ltd. Shenyang Jinbei Automobile Co., Ltd.

November 2007

13

Statistics

Production Manufacturer Large Bus (13) Zhengzhou Yutong (Group) Co., Ltd. Dandong Huanghai Auto Co., Ltd. Shanghai Sunwin Bus Corp. Xiamen Golden Dragon Van Co. Ltd Jinlong Allies Auto Industry (Suzhou) Co., Ltd Zhongtong Bus Holding Co.,Ltd Beiqi Foton Motor Co., Ltd. Jinhua Young Man Automobile Mfg. Co., Ltd. Yangzhou Yaxing Motor Coach Co., Ltd. Anhui Ankai Automobile Co., Ltd. Guilin Bus Industrial Group (China) Fujian Xinfuda Auto Industry Co., Ltd. Hunan Midea Bus Mfg. Co., Ltd. Medium Bus (13) Jinlong Allies Auto Industry (Suzhou) Co., Ltd. Zhengzhou Yutong (Group) Co., Ltd. *FAW Toyota Motor Sales Co., Ltd. Yangzhou Yaxing Motor Coach Co., Ltd. Dongfeng Motor Corp. Baoding Chang’an Bus Co., Ltd. Anhui Ankai Automobile Co., Ltd. Xiamen Golden Dragon Van Co. Ltd China FAW Group Corp. Beiqi Foton Motor Co., Ltd. Ziyang Nanjun Motor Industrial Group Corp. Jiangsu Yaxing Motor Coach (Group) Co., Ltd. Zhongtong Bus Holding Co.,Ltd Light Bus (15) Shenyang Jinbei Automotive Co., Ltd. Jiangxi Jiangling Automotive Holding Co., Ltd. Nanjing Automobile (Group) Corp. Shenyang Zhongshun Motor Co., Ltd. Beiqi Foton Motor Co., Ltd. South East (Fujian) Motor Co. ,Ltd. Shanghai Huizhong Automotive Mfg. Co., Ltd Beijing Automobile Works Jinlong Allies Auto Industry (Suzhou) Co., Ltd. Dongfeng Motor Corp Baoding Chang’an Bus Co., Ltd China FAW Group Corp. Jiangxi Fire-fighting Vehicles Plant Guangzhou Yangcheng Automobile Co., Ltd. Zhejiang Feidie Bus Co., Ltd. 3,810 2,164 1,874 1,535 962 1,041 391 538 163 133 147 63 56 42 15 48,474 20,953 15,327 14,996 12,093 10,937 2,987 2,875 2,760 1,904 1,627 927 660 415 316 -1.6 12.51 27.41 88.8 9.49 73.05 2.96 462.62 9.31 -15.38 -5.41 1754 19.78 -22.14 -33.89 5,002 1,870 2,105 1,422 1,092 969 306 648 173 139 126 63 60 42 10 632 631 260 113 105 174 60 66 25 25 103 10 62 9,032 6,804 3,707 1,587 1,573 1,060 1,017 903 612 592 580 499 496 22.58 40.38 3.98 25.36 19.35 -16.6 -30.39 17.93 1280.95 -3.85 619 357 251 129 129 175 80 65 35 32 99 19 62 637 220 179 168 112 163 145 74 14 67 10 0 27 7,609 3,396 1,981 1,641 1,564 1,224 985 969 883 697 437 387 358 56.79 0.65 -15.05 24.92 119.38 47.26 72.12 -28 203.47 48.55 496 313 169 145 104 163 144 57 8 78 8 0 22 Oct. Accumulated Change, % Oct.

Sales Accumulated Change, % 51.68 -6.86 -15.52 31.71 109.73 66.1 54.33 -26.71 202.8 44.31 23.99 27.92 3.41 21.91 16.49 -15.59 -28.9 20.45 1970.37 -7.6 10.79 10.98 30.52 91.1 5.48 89.09 -1.41 370.82 8.79 -15.64 -9.81 995.29 27.24 5.06 -43.61

7,317 3,013 1,971 1,680 1,545 1,224 948 975 767 697 433 387 355 8,827 6,534 3,670 1,441 1,512 996 1,026 927 611 583 559 474 496 52,050 20,631 15,461 14,929 11,702 10,833 2,582 2,872 2,734 1,904 1,554 931 626 540 309

14

November 2007

Statistics

Production Manufacturer Car (24) FAW-VW Automotive Co., Ltd. Shanghai-VW Automotive Co., Ltd. Chery Auto Co., Ltd. Shanghai-GM Automotive Co., Ltd. Dongfeng Nissan Passenger Vehicle Company *FAW Toyota Motor Sales Co., Ltd. Guangzhou Honda Auto Co., Ltd. Dongfeng-Citroen Automobile Co., Ltd. Zhejiang Geely Holding Group Co., Ltd. Chang’an Ford Automobile Co., Ltd. Beijing Hyundai Motor Company Tianjin FAW Xiali Automobile Co., Ltd. Guangzhou Toyota Motor Co., Ltd. SAIC-GM Dongyue Automobile Co., Ltd. Shenyang Brilliance Jinbei Automotive Co., Ltd. FAW Haima Motor Co., Ltd. Chongqing Chang’an Suzuki Automobiles Co., Ltd. Dongfeng Yueda Kia Auto Co., Ltd. BYD COMPANY LIMITED FAW Car Co., Ltd. Dongfeng Honda Automobile Co., Ltd. Jiangxi Changhe Automobile Co., Ltd. Chana Automobile (Group) Liability Co., Ltd. Harbin Hafei Automotive Co., Ltd. Multi Purpose Vehicle (10) Guangzhou Honda Auto Co., Ltd. Anhui JAC Automotive Co., Corporation Shanghai GM (Shenyang) Beisheng Automotive Ltd. Dongfeng Motor Corp. Dongfeng Nissan Passenger Vehicle Company Chery Auto Co., Ltd. Shenyang Brilliance Jinbei Automotive Co., Ltd. Shanghai-VW Automotive Co., Ltd. FAW Haima Motor Co., Ltd. Chana Automobile (Group) Liability Co., Ltd. Sport Utility Vehicle (10) Chery Auto Co., Ltd. Great Wall Motor Co., Ltd. Chengdu New-Dadi Co., Ltd. Jiangxi Jiangling Automotive Holding Co., Ltd. Hunan Changfeng Auto Manufacturing Co., Ltd. Chenzhou Ji’ao Nanyan Chifeng Auto Co., Ltd. Hebei Zhongxing Automobile Co., Ltd Dongfeng Motor Corp. Dandong Huanghai Auto Co., Ltd. Anhui JAC Automotive Co., Corporation 4,136 3,801 3,059 1,712 112 632 1,054 1,138 173 639 2,611 3,116 1,036 809 1,052 877 587 575 608 701 36,583 34,363 31,389 16,150 10,657 8,721 8,581 7,886 7,040 6,668 40,480 32,627 8,870 8,011 7,560 6,654 5,712 5,008 4,324 3,624 20.55 27.52 -2.37 0.7 443.7 -10.12 5.06 -42.04 -46.57 111.97 66.74 51.24 -13.53 10.01 -7.75 -10.6 109.28 3,520 3,502 0 1,604 382 897 1,201 921 269 418 2,717 3,141 1,042 481 799 899 612 578 511 803 39,888 32,260 20,854 19,645 22,186 22,545 21,783 20,482 17,961 20,459 16,113 14,402 13,441 7,644 8,500 10,728 10,615 6,387 9,643 8,858 6,700 6,478 4,107 2,075 398,889 366,507 274,780 235,933 214,499 200,815 200,147 180,524 175,283 171,424 150,956 149,655 137,590 112,631 100,133 93,126 81,984 80,707 80,562 69,143 64,966 48,786 47,935 36,504 35.67 26.55 29.31 9.21 34.02 14.35 8.9 9.11 5.79 58.75 -28.89 -10.18 298.36 32.49 110.55 88.43 -11.76 -12.59 60.91 40.9 130.38 -8.65 -38.9 38,274 28,481 22,958 32,392 20,396 20,528 19,973 17,133 17,487 19,564 15,916 12,506 12,801 0 9,263 9,838 10,078 5,335 9,577 7,768 6,689 6,170 2,409 2,837 Oct. Accumulated Change, % Oct.

Sales Accumulated Change, % 41.54 31.77 32.02 15.31 32.91 13.02 10.06 4.28 9.68 58.77 -29.19 -7.14 308.86 352.2 108.47 96.16 -9.09 -16.47 63.5 42.75 158.67 -8.67 -33.15 24.53 25 2.12 487.43 -12.59 32.05 -38.31 -41.44 125.07 59.25 65.78 -2.77 -0.53 -7.17 -8.09 94.65 -

381,572 355,260 276,778 340,256 207,531 198,745 195,977 167,441 178,337 166,919 150,220 149,751 136,926 8,628 99,783 98,376 85,305 76,306 80,588 64,476 65,642 47,030 43,382 38,825 35,743 34,037 0 15,680 9,820 8,036 8,360 8,611 7,240 6,095 41,878 31,544 8,836 8,357 7,067 6,710 5,691 4,802 5,104 3,454

November 2007

15

Statistics

Auto Production and Sales of Major Manufacturers in October, 2007
In units

Manufacturer Oct. Shanghai Auto Industry (Group) Corp. FAW Group Corp. Dongfeng Motor Corp. Chana Automobile (Group) Liability Co., Ltd. Beijing Automotive Industry Group Co. Guangzhou Auto Industry (Group) Co., Ltd. Chery Auto Co., Ltd. Brilliance China Automotive Holdings Limited Harbin Hafei Automotive Co., Ltd. Anhui Jianghuai Auto Co., Ltd. Zhejiang Geely Holding Group Co., Ltd. Great Wall Motor Co., Ltd. Jiangxi Changhe Automobile Co., Ltd. China National Heavy Duty Truck Group Co., Ltd. BYD COMPANY LIMITED Nanjing Automobile (Group) Corp. Shannxi Auto (Group) Co., Ltd. Shangdong Kaima Automotive Manufacturing Co., Ltd Soueast (Fujian) Auto Industrial Co., Ltd. Ziyang Nanjun Motor Industrial Group Corp. Hebei Zhongxing Automobile Co., Ltd. Qingling Motor (Group) Co., Ltd Zibo Auto Works Chengdu Wangpai Motor Co., Ltd. Chongqing Lifan Passenger Vehicle Co., Ltd. Chongqing Lifan Motor Co., Ltd. Hunan Changfeng Auto Manufacturing Co., Ltd. Dandong Huanghai Auto Co., Ltd. Chengdu New-Dadi Co., Ltd. Xiamen King Long Motor Group Co., Ltd Chenzhou Ji’ao Nanyan Chifeng Auto Co., Ltd. Shenyang Zhongshun Motor Co., Ltd. China Yituo Group Co., Ltd. Zhengzhou Yutong Bus Co., Ltd. Baotou North-Benz Heavy-Duty Truck Co. ,Ltd. Fujian New Longma Co., Ltd. Rongcheng Huatai Motor Co., Ltd. Hubei Tri-Ring Special Truck Co., Ltd. Anhui Hualing Heavy Duty Truck Co., Ltd. Hunan Automotive Axle Works Fujian Xinfuda Auto Industry Co., Ltd. Sichuan Yinhale Automobile Co., Ltd. Wuhan Zhongyu Automobile Co., Ltd. Hunan JiangNan automobile manufacturing Co., Ltd. Jiangsu Yaxing Motor Coach (Group) Co., Ltd. Jinggong Zhenjiang Automobile Manufacture Co. Ltd. 119,325 120,746 95,174 79,477 56,638 43,332 24,103 21,512 17,442 16,494 17,961 10,401 11,140 7,513 9,643 6,854 5,509 5,700 3,841 3,666 3,369 2,800 3,308 1,868 2,107 1,752 1,864 1,827 1,643 1,215 2,199 1,535 1,061 1,268 828 748 820 865 871 466 491 451 400 701 169 302

Production Accumulated 1,243,951 1,182,043 952,971 702,908 583,744 413,022 324,104 244,114 193,611 175,371 175,283 100,450 91,037 85,207 80,562 79,709 56,339 54,060 48,375 37,586 33,629 30,565 25,018 22,692 22,077 21,566 20,671 17,342 16,727 16,517 15,217 15,023 14,804 14,417 14,018 13,732 11,918 10,575 10,111 7,246 7,034 5,749 4,019 3,698 3,412 2,885 Change, % 19.99 20.38 25 22.51 5.55 50.7 37.77 41.45 -10.75 19.94 5.66 41.87 -13.4 78.69 60.91 -10.26 63.13 37 20.18 60522.58 39.31 6.09 6.99 17.5 461.47 150.65 11.43 63.93 83.95 48.2 -2.78 89.14 -8.5 48.63 82.79 41.06 168.91 61.85 134.87 6.43 -4.18 -54.5 54.87 58.85 20.01 19.76 Oct. 115,734 111,660 89,538 72,670 57,990 39,679 26,578 24,240 18,538 17,331 17,487 10,382 10,820 7,710 9,577 7,507 5,802 5,610 3,918 3,658 3,782 2,852 3,210 1,922 1,540 1,843 2,072 1,949 1,665 1,180 2,243 1,422 687 853 853 765 863 947 807 474 477 441 550 412 184 262

Sales Accumulated 1,248,966 1,165,392 920,591 691,307 575,312 407,165 326,813 242,197 204,298 175,639 178,337 97,709 88,398 86,048 80,588 79,196 56,823 53,090 47,522 37,516 31,934 30,571 25,127 22,113 21,346 19,728 20,408 17,437 16,568 16,330 15,308 14,931 14,597 13,851 13,703 13,747 10,530 10,344 9,044 7,219 7,204 5,796 3,936 1,882 3,117 2,789 Change, % 23.71 23.09 24.04 25.01 3.56 53.14 41.06 41.89 -7.38 21.67 9.61 36.37 -14.38 72.98 63.5 -8.64 64.76 33.47 29.49 87146.51 35.61 8.82 8.53 20.84 537.96 142.72 5.48 66.49 95.89 51.13 -7.02 91.13 -2.05 39.46 82.03 42.09 122.53 69.49 117.77 5.6 2.42 -57 69.07 -25.7 13.59 17.38

16

November 2007

Statistics

Car Production and Sales by Model in October, 2007
In units

Model FAW CAR Besturn 2.0L Besturn 2.3L Red Flag Wise person Mazda 6 2.0L Mazda 6 2.3L Red Flag Century star 2.0L Red Flag Century star 2.4L FAW-VW Audi A4 1.8T Audi A4 2.4L Audi A4 3.0L Audi A6 1.8L Audi A6 1.8T Audi A6 2.4L Audi A6L 2.0T Audi A6L 2.4L Audi A6L 3.0L Audi A6L 3.2L Audi A6L 4.2L Bora 1.6 L Bora 1.8 L Bora 1.8T Golf 1.6L Golf 1.8L Jetta Caddy 1.6L Caddy 1.8L Magotan 1.8T Magotan 2.0L Sagitar 1.6L Sagitar 1.8L Sagitar 2.0L Tianjin FAW Vela Weizhi Vitz Xiali TJ7101 Xiali TJ7101U Xiali TJ7131 Xiali TJ7131U Tianjin FAW Toyota COROLLA EX Crown COROLLA Land Cruiser Prado Prius

Production Oct. 8,858 1,819 288 339 5,009 1,385 0 0 39,888 1,711 0 0 0 0 0 2,677 3,021 8 812 11 3,844 1 0 181 0 14,458 0 0 5,913 878 4,079 863 1,431 14,402 820 3,191 250 1,004 6,616 530 1,991 23,459 3,667 3,756 9,222 5 909 36 Accumulated 69,143 16,927 2,374 2,410 32,525 13,346 27 0 399,532 15,974 0 0 0 0 0 27,658 30,372 11 6,947 188 53,399 625 0 3,495 355 174,866 643 0 21,554 2,722 40,178 6,313 14,232 149,655 12,226 31,802 1,354 7,591 61,538 4,703 30,441 211,515 50,504 42,931 36,201 2,282 8,418 226 Change,% 40.9 1579.27 32.26 -18.5 30.83 -21.17 -97.91 -100 34.58 41.71 -100 -100 -100 -100 -100 74.81 34.74 -99.86 5243.85 -59.74 97.87 -73.66 -100 -60.27 -92.7 12.62 -77.46 -100 222.92 26.01 4.83 -10.18 -43.52 -74.86 -51.1 3.97 -63.39 -41.49 15.15 -24.41 20.21 -11.21 61.54 -88.96 Oct. 7,768 1,875 151 0 3,214 2,289 234 0 38,310 1,480 0 17 0 0 0 2,545 2,997 1 584 8 4,213 7 0 238 8 15,255 35 1 4,482 14 4,032 946 1,447 12,506 1,033 1,667 203 780 6,018 688 2,117 21,452 2,890 3,743 8,163 56 868 16

Sales Accumulated 64,476 15,641 1,987 2,044 26,623 17,596 365 46 383,831 15,934 0 60 1 685 2 25,078 29,612 12 6,326 249 48,923 644 112 3,040 1,452 169,272 2,254 5 18,412 499 39,471 6,889 14,898 149,751 12,479 27,558 1,691 8,013 62,116 5,019 32,875 209,589 49,663 43,245 34,438 2,417 8,413 299 Change,% 42.75 1447.08 71.74 -44.31 13.23 22.95 -75.14 24.32 40.44 44.33 -100 -61.04 0 -81.24 -87.5 61.11 31.18 -99.84 -66.53 98.54 -73.47 -93.16 -64.29 -55.77 19 -25.86 -99.27 232.53 77.46 55.43 -7.14 -37.7 -64.51 -48.88 8.35 -62.86 -34.2 14.31 -25.95 22.44 4.45 71.59 -85.87

November 2007

17

Statistics
Production Oct. 3,526 2,338 10,901 10,084 644 173 33,398 3,858 1,295 443 526 3,804 603 2,488 480 329 6,734 1,573 222 5,639 3,973 867 271 354 354 30,348 3,059 160 850 1 5 3,999 0 411 951 918 495 9,822 2,033 586 895 1,872 669 3,622 47,603 1,990 50 2,032 1,111 5 Accumulated 37,847 33,106 100,166 81,977 11,149 7,040 374,393 34,590 12,597 20,629 8,114 10,405 9,072 9,358 4,222 4,776 66,916 19,978 1,942 82,671 78,149 3,611 4,275 15,714 15,714 379,953 31,389 5,107 7,993 5,457 1,669 56,579 1,201 4,496 20,794 9,964 848 95,986 25,839 3,800 9,240 31,096 8,282 60,213 401,111 26,916 909 17,483 1,460 6 Change,% -10.53 15.19 62.69 65.87 -42.04 26.01 195.19 504.46 102.15 139.85 900.47 2.25 -11.62 74.63 -49.04 15.35 8.13 -33.74 107.93 14.03 -2.37 -39.42 -61.34 38.49 -73.1 -31.13 -12.9 9.22 115.94 -47.48 -30.81 74.88 -48.24 96.54 16.33 -15.19 -78.78 -37.55 Oct. 3,423 2,293 10,107 9,421 417 269 29,402 2,172 741 1,344 615 2,328 937 1,057 212 305 7,409 1,527 201 5,616 3,769 677 244 760 760 35,906 3,514 323 567 819 186 4,875 100 311 2,242 730 358 9,721 2,129 480 922 4,015 1,012 3,602 42,480 2,243 79 1,958 1,026 0 Sales Accumulated 37,898 33,202 105,616 90,294 8,082 7,240 363,871 31,593 11,770 20,249 7,879 6,466 8,270 7,046 4,589 5,140 67,107 19,532 2,011 82,720 78,054 4,440 4,171 13,611 13,611 382,503 33,619 4,792 7,062 3,450 1,009 55,534 2,466 3,487 21,602 9,820 641 95,978 26,066 3,973 9,802 32,293 9,314 61,586 414,334 26,805 1,803 17,143 1,343 1 Change,% -11.14 15.66 70.66 80.05 -38.31 31.78 173.01 486.45 101.78 141.1 840.37 31.76 -8.5 90.65 -41.95 32.18 18.09 5.51 80.33 16.69 9.21 -36.4 -65.08 56.19 -15.02 -29.18 -5.79 9.4 116.6 -47.24 -25.43 57.66 -38.56 123.88 21.83 -10.72 -44.28 -36.16 -

Model Reiz Vios FAW Haima Family Mazda 3 Premacy Shanghai-VW POLO 2-box Jinqing1.4L POLO 2-box Jinqing1.6L POLO 3-box Jinqu1.4L POLO 3-box Jinqu1.6L Octavia 1.6L Octavia 1.8T Octavia 2.0L Passat 1.8T Passat 2.0L Passat Lingyu1.8T Passat Lingyu2.0T Passat Lingyu2.8T Santana 1.8L Santana 3000 Touran 1.8L Touran 2.0L SAIC ROEWE750 Shanghai GM Buick GL8 Buick Regal 2.0 Buick Regal 2.5 Buick Park Avenue 2.8L Buick Park Avenue 3.6L Buick LaCROSSE 2.4 Buick LaCROSSE 3.0 Cadillac SLS Excelle 2-box 1.6L Excelle 2-box 1.8L Excelle wagon 1.6L Excelle3-box 1.6L Excelle3-box 1.8L Sail 2-box 1.6L Sail 3-box 1.6L Chevrolet Epica Chevrolet Aveo Chevrolet Lova Shanghai-GM Wuling Spark 0.8L Spark 1.0L Nanqi Group MG-7 1.8L MG-7 2.8L

18

November 2007

Statistics
Production Oct. 263 6 510 54 0 0 0 0 83 20,482 988 674 3,490 1,265 1,856 1,504 4,820 1,970 937 27 369 147 2,435 22,301 112 469 2,373 26 3 5,432 0 3,698 4,615 5,573 9,057 146 2,131 20 3,786 50 2,513 11 170 230 11,379 4,679 6,700 322 20 114 188 0 0 Accumulated 2,893 104 7,333 2,726 254 128 292 255 2,031 180,524 10,230 7,261 28,317 7,596 14,341 11,258 33,460 15,288 10,965 7,441 3,918 1,950 28,499 225,359 10,657 6,031 28,817 265 203 41,061 0 46,931 39,129 52,265 85,160 1,929 16,318 574 53,002 861 2,513 11 2,221 3,507 97,365 32,399 64,966 18,784 8,822 1,965 3,413 421 4,145 Change,% 136.94 -67.6 -46.92 -65.71 -30.98 -6.57 294.59 -37.8 -45.11 9.11 2557.14 852.89 -18.5 245.73 -50.15 14.08 30.81 -40.02 -43.19 -22.37 -65.59 44.51 40.81 9.2 -12.56 -75.62 186.34 -100 26.65 11.97 -9.96 -14.19 3.59 -81.55 57.29 -22.19 87.65 36.77 130.38 32.93 882100 145.32 -1.22 -33.08 Oct. 209 6 510 42 0 0 60 0 105 17,133 894 622 2,856 447 1,179 955 4,190 1,692 827 598 227 78 2,568 20,789 382 517 1,737 25 11 5,383 3 3,913 3,612 5,205 7,260 163 1,940 10 2,978 49 1,762 0 161 197 11,354 4,665 6,689 993 400 391 185 15 2 Sales Accumulated 2,923 104 7,079 2,762 274 97 286 324 1,949 167,441 8,370 6,376 25,054 5,763 12,624 11,176 32,942 14,864 9,999 7,821 3,839 2,133 26,480 217,585 9,820 6,248 25,178 379 234 44,208 1,528 45,782 32,322 51,876 80,146 2,078 14,190 448 49,264 1,412 1,762 0 1,910 3,773 100,660 35,018 65,642 17,441 6,933 1,708 3,516 315 4,647 Change,% 299.32 -72.34 -45.48 -65.05 -21.71 -56.89 128.8 -21.93 -47.73 4.28 -27.99 166.56 213.72 -43.22 17.17 18.71 -48.88 -48.66 -22.48 -57.35 82.22 39.35 51.17 -24.12 -65.42 350.78 -67.03 16.43 10.28 -14.56 -14.91 -3.33 -59.6 41.9 -30.9 113.85 61.42 158.67 7.06 693200 105.29 2.15 -18.6

Model Perla 1.7L Palio 1.3L Palio 1.5L Siena 1.5L Soyat 1.3L Soyat 1.5L Soyat 2WD Unique Palio Weekend 1.5L Dongfeng Citreon C2 1.4L C2 1.6L Elysee Picasso Peugeot 206 1.4L Peugeot 206 1.6L Peugeot 307 1.6L Peugeot 307 2.0L Citroen zx 2-box 1.4L Citroen zx 2-box 1.6L Citroen zx 3-box 1.4L Citroen zx 3-box 1.6L C-Triomphe Dongfeng Nissan GENISS Teana 2.0L Teana 2.3L Teana 3.5L Tuyi (SUV) Sylphy Sunny Tiida(Yida) LIVINA Tiida(Qida) Dongfeng Yueda-KIA Carnival (MPV) Rio 1.4L Rio 1.6L Cerato 1.6L Cerato 1.8L Sportage 2.0L Sportage 2.7L Optima 1.8L Optima 2.0L Dongfeng Honda CRV Civic Beijing Benz 300C Benz 2.0 Benz 3.0 Benz 3.5 Outlander

November 2007

19

Statistics
Production Oct. 20,338 1,825 3,786 439 2,221 23 10,834 293 917 25,919 4,136 2,110 3,998 1,271 5,802 4,814 3,758 30 13,441 2,686 10,755 28,414 549 4,107 23,668 90 20,587 128 11,451 5,410 3,231 0 0 367 10,615 3,091 4,417 2,633 14 460 17,961 202 2,203 0 0 4,537 1,990 0 1,857 6,986 9,643 8,559 980 24,103 Accumulated 188,510 21,487 31,842 5,712 21,342 3,329 89,172 3,229 12,397 236,730 36,583 18,001 31,482 9,164 40,116 46,323 54,683 378 137,590 28,734 108,856 251,323 6,112 47,935 196,720 556 175,859 4,435 102,473 31,283 3,504 26,252 3,248 4,664 81,984 24,401 25,788 14,324 4,855 12,616 175,283 4,072 15,850 4,473 888 35,574 12,575 1,505 28,073 66,947 80,562 75,909 3,204 324,104 Change,% -19.67 -30.27 96.3 -7.68 -33.86 -32.11 -61.47 31.14 10.55 20.55 22.65 -4.5 59.12 45.63 15.76 -9.14 -52.45 298.36 277.24 304.34 26.18 -51.02 5.36 62.86 64.34 1569.32 -16.64 -56.8 100.77 -11.76 -18.11 -40.95 -35.13 5.79 -6.32 -53.16 -89.79 227.18 781.22 -53.03 -41.02 16.27 60.91 82.12 37.77 Oct. 19,871 2,066 3,450 505 2,171 102 10,428 299 850 23,493 3,520 1,826 3,417 1,162 5,089 4,620 3,845 14 12,801 2,538 10,263 24,179 403 2,409 21,352 15 20,060 496 10,869 4,221 2,379 1,794 60 241 10,078 2,945 4,702 1,324 250 857 17,487 281 2,100 0 0 3,902 1,953 16 1,932 6,980 9,577 8,507 980 26,578 Sales Accumulated 186,612 21,051 30,817 5,575 22,743 2,798 88,306 3,306 12,016 231,720 35,743 17,518 30,526 8,915 38,810 46,155 53,702 350 136,926 28,581 108,345 240,249 5,931 43,382 190,772 164 170,626 3,707 101,130 29,441 2,535 25,822 3,020 4,971 85,305 25,373 28,576 12,135 4,940 14,281 178,337 4,143 17,405 4,552 813 35,356 12,504 1,456 28,130 66,985 80,588 75,902 3,200 326,813 Change,% -20.33 -31.86 94.8 -11.01 -27.8 -32.64 -61.97 20.89 12.07 24.53 23.07 -4.64 63.97 49.49 19.84 -9.3 -54.43 308.86 287.43 314.91 34.25 -43.02 13.18 62.3 65.4 2382.38 -16.59 -59.76 156.24 -9.09 -20.02 -30.39 -32.18 9.68 11.41 -61.34 -87.84 242.93 784.3 -54.51 -40.5 18.38 63.5 82.57 41.06

Model Beijing-Hyundai Sonata Tucson 2.0L Tucson 2.7L Accent Elantra 2 box 1.6L Elantra 3 box 1.6L Elantra 3 box 1.8L NF Yuxiang Guangzhou Honda Odyssey Fit 2 box 1.3L Fit 2 box 1.5L City 1.3L City 1.5L Accord 2.0L Accord 2.4L Accord 3.0L Guangzhou Toyota CAMRY 2.0L CAMRY 2.4L Chana CM8 Benben Crossover Jiexun Chana Ford

S-MAX
Focus Mazda 3 Mondeo Zhisheng Mondeo 2.0L Mondeo 2.5L Volvo S40 Chana Suzuki Alto Gazelle Tianyu 2 box Tianyu 3 box Swift Geely Hisoon Marindo M303 1.5L HQ (SRV) HQ 2-box King Kong Vision BL(Meirenbao) Ulion CK (Ziyoujian) BYD F3 F3-R Chery

20

November 2007

Statistics
Production Oct. 1,377 399 3,568 6,730 66 108 409 685 43 8,052 2,617 2,161 659 1,502 10,647 1,093 1,054 1,105 4,038 434 766 1,328 829 2,800 70 482 263 1,592 165 70 158 12,052 1,509 287 168 75 36 5,750 5,051 253 Accumulated 50,234 11,341 49,877 68,450 871 3,863 2,178 13,640 523 80,715 40,603 29,551 10,656 18,895 110,405 1,691 8,581 4,710 61,460 3,533 7,401 21,698 1,331 37,438 1,262 7,393 446 21,901 1,187 1,988 3,261 137,068 20,439 6,099 4,930 4,300 736 54,732 47,070 4,105 Change,% 391.57 59.89 -41.46 263.52 386200 35.87 34.88 92.99 -0.06 91.9 43.95 -13.91 131.81 93.34 -10.12 301.88 167.74 123.75 36905 4.74 19.59 10.33 -44.89 24543.33 50.49 -70.52 66.78 -72.46 -17.68 -32.09 -47.41 -8.82 -62.88 -30.76 77.19 121.92 -4.95 Oct. 1,573 621 3,723 7,508 34 400 384 828 59 8,646 2,723 2,070 630 1,440 11,142 678 1,201 753 6,116 177 284 1,921 12 2,949 76 675 124 1,475 251 137 211 12,716 1,290 495 576 400 76 5,745 5,109 173 Sales Accumulated 50,695 10,911 50,311 66,989 492 3,671 2,173 13,849 527 83,496 41,999 26,239 11,155 15,084 109,419 1,276 8,360 4,351 63,856 2,660 4,753 24,108 55 36,689 1,518 8,306 196 19,626 1,278 1,955 3,810 141,178 20,512 6,869 4,922 5,804 718 52,363 46,279 2,933 Change,% 435.38 55.6 -40.46 275.88 58.85 37.86 68.37 3.73 103.32 39.75 3.84 87.78 90.53 63700 -12.59 273.48 178.68 66.98 14.51 -95.17 18.47 -25 415200 47.15 -63.36 5.73 -62.9 -17.23 -32.59 -40.56 7.33 -43.24 -43.99 67.06 111.66 -32.04

Model A520 1.6L A520 2.0L QQ 0.8L QQ 1.1L V2 V5 2.0L V5 2.4L Orient Son (Dongfangzhizi) 2.0L Orient Son (Dongfangzhizi) 2.4L Chery A15 (Qiyun) Tiggo Brilliance BMW BMW 3 BMW 5 Brilliance Auto Jinbei Badao Granse Splendor 1.6L Splendor 1.8L Splendor 2.0L Zhonghua 1.8T Zhonghua 2.0L Zhonghua 2.4L Soueast Freeca Galant Grand Voyager Lancer Lingli Space Wagon Lioncel Hafei Lobo 1.0L Lobo 1.1L Saibao Saima 1.3L Saima 1.6L Great Wall Hover Safe

Share of Production and Sales of Big Five in October, 2007
In units

Manufacturer First Auto Work Dongfeng Auto Corp. Shanghai Auto Industry Corp. Chana Group Beijing Auto Industry Corp.

Production Accumulated 1,182,043 952,971 1,243,951 702,908 583,744 Share, % 16.37 13.19 17.22 9.73 8.08 Accumulated

Sales Share, % 16.30 12.87 17.47 9.67 8.05

1,165,392 920,591 1,248,966 691,307 575,312

November 2007

21

Statistics

Auto Production and Sales by Type in October, 2007
In units

Type Total In which: Domestic made CKD Passenger Car Diesel fueled Gasoline fueled Others In which: Car MPV SUV Others Commercial vehicle Diesel fueled Gasoline fueled Others In which: Bus Truck Semi tractor Bus chassis Truck chassis

Production Oct. 713,094 702,166 10,928 522,237 3,250 518,951 36 379,846 17,612 32,132 92,647 190,857 148,058 42,716 83 17,610 117,572 15,402 7,060 33,213 Accumulated 7,222,570 7,126,592 95,978 5,142,327 37,414 5,104,687 226 3,873,405 183,424 283,181 802,317 2,080,243 1,678,095 400,726 1,422 193,600 1,262,939 151,879 84,372 387,453 Change,% 22.6 26.97 -65.48 21.7 5.79 21.89 -88.96 23.58 17.01 52.33 7.24 24.88 27.85 13.96 -12.49 21.68 18.27 116.11 3.1 35.11 Oct. 692,307 682,348 9,959 496,928 3,488 493,424 16 364,646 17,747 30,903 83,632 195,379 152,274 42,990 115 18,342 122,495 13,540 6,861 34,141

Sales Accumulated 7,150,291 7,054,070 96,221 5,079,400 36,859 5,042,242 299 3,803,285 183,063 282,604 810,448 2,070,891 1,661,200 408,247 1,444 194,301 1,264,924 150,623 84,205 376,838 Change,% 24.02 28.34 -64.24 23.57 11.42 23.73 -85.87 25.19 21.31 53.24 9.94 25.14 26.75 19.1 -6.96 24.85 18.77 107.37 3.84 34.33

Engine Production and Sales of Selected Engine-makers in October, 2007
In units

Production Engine-maker Guangxi Yuchai Machinery Co., Ltd. Liuzhou Wuling Motors Co., Ltd. FAW-VW Automotive Co., Ltd. Chana Automobile (Group) Liability Co., Ltd. Shanghai-VW Automotive Co., Ltd. Chery Automobile Co., Ltd. Guangqi TOYOTA Engine Co., Ltd. China FAW Group Corp. Dongfeng Honda Engine Co., Ltd. Harbin Dongan Auto Engine Co., Ltd. Shanghai-GM Automotive Co., Ltd. Beijing Hyundai Motor Company. Harbin Dongan Motor Co., Ltd. Kunming Yunnei Power Co., Ltd. Citroen Automobile Co., Ltd. Tianjin FAW Toyota Engine Co., Ltd. Dongfeng Nissan Passenger Vehicle Company Oct. 41,143 45,840 38,366 40,874 28,456 19,890 26,220 23,113 26,237 14,864 22,091 20,282 14,036 13,488 20,738 20,956 19,739 Accumulated 415,514 398,580 396,174 375,450 293,628 285,892 285,685 252,491 237,557 233,083 216,722 205,505 194,923 186,298 180,594 179,328 178,021 Change, % 38.54 12.83 33.41 16.05 8.74 41.86 158.09 35.89 11.27 87.18 1.09 -24.61 -22.92 7.48 8.68 18.67 111.38 Oct. 41,465 53,911 38,599 41,551 24,835 40,571 26,673 21,838 26,162 17,883 22,091 21,102 15,157 14,546 20,431 19,807 20,046

Sales Accumulated 414,034 447,640 380,045 375,299 283,115 268,179 286,486 248,579 237,237 228,354 216,722 206,279 196,938 187,835 180,516 177,496 178,348 Change, % 40.58 20.45 34.26 16.96 5.97 33.01 162.19 36.67 11.3 85.79 1.09 -23.93 -22.89 8.72 8.87 18.36 113.3

Source: CAAM & CATARC

22

November 2007

November 2007

SUV is entering a high-growth period
300,000 250,000

SUV Registration Volume and Growth

34.4%
25.0% 21.8% 75.0% IMPORTED
DOMESTIC

Passenger vehicle registrations reached 1,406,129 units in the third quarter of 2007, a year-on-year growth of 23.9%. In terms of body types, SUV models still led the growth in all segments with a year-on-year increase of 63.7%, while sedan models and hatchback models both maintained steady growth, with 26.2% and 20.3% year-on-year increases respectively.

200,000 150,000 100,000 50,000 2006(Jan-Sep)

78.2%

2007(Jan-Sep)

SUV market thriving
SUV models have shown significant growth this year after suffering a depression last year. In the first three quarters this year, SUV registrations achieved a year-on-year growth of 34.4%, much higher than that of the total passenger vehicle market. The YoY growth of the SUV market soared after the second quarter, even reaching 63.7% in the third quarter.

Japanese Brands leading the SUV Market
In terms of brand, the fastest growing brands in the SUV market were Japanese. In the third quarter of this year, SUV registrations of Japanese brands edged out those for Chinese brands as the leading brand in this segment, with its share rising from 25.4% in the first quarter to 34.9% in the third quarter. By comparison, Chinese brands’ SUV registrations slumped this year, with their market share dropping to 34.0% the third quarter from 45.1% the first quarter this year. For other brands, Korean and European brands have maintained steady growth, while USA brand SUV registration has gradually dwindled.

YoY Growth by Bodystyle
70% 60% 50% 40% 30% 20% 10% 0% -10% 2006Q1 2006Q2 -2.8% 2006Q3 2006Q4 36.7% 35.2% 12.6% 9.5% 7.5% HATCHBACK 63.7%

MPV SEDAN SUV

Market Share of SUV by Origin
2007Q2 2007Q3

2007Q1

50% 40%

The SUV segment is unique in the sense that it has a much higher share of imported vehicles whereas other segments are made up of more than 90% domestically made models. In the first three quarters, the market share of imported SUV registrations rose to 25.0% from 21.4% for the same period last year, with a year-on-year increase of 53.8%.

30% 20% 10% 0% 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3

USA CHINA EUROPE JAPAN KOREA

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In term of price, the market share of SUV models priced between RMB150,000 and 200,000 reached 21.7% in the past nine months this year, 3 percentage points up from the same period last year, while that of SUV models priced below RMB100,000 decreased. All the SUV models priced below RMB100,000 are Chinese brand models, which directly influenced the performance of Chinese brands’ SUVs.

In this hotly contest segment, CR-V and Tucson led the market with big shares, while Santa fe and Outlander also achieved good performances. With the competitive price and the good reputation gained by the imported Sportage previously, the domestic Sportage is hoped to have a brilliant future.
Market Share by Model in Sportage Competitor Set (Jan-Sep, 2007)
FORESTER OUTLANDER 3.9% 10.5% SPORTAGE 3.5% TUCSON 33.4%

Market Share by Price Range in SUV Market
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7.2% 7.9% 15.8% 18.7% 24.9% 25.4% 2006(Jan-Sep) 7.7% 8.6% 13.6% 21.7% 23.3% 25.1% 2007(Jan-Sep) > RMB600,000 RMB 300,000600,000 < RMB100,000 RMB 150,000200,000 RMB 200,000300,000 RMB 100,000150,000

SANTA FE 15.8%

CR-V 32.9%

With the continued rising oil prices, low capacity SUV models are increasingly welcomed by consumers. In Jan-Sep this year, the market share of SUV models with capacity below 2.0L went up to 32.4% from 22.5% the same period last year, while the market share of SUV models with capacity between 2.1L and 3.0L decreased 9.7 percentage points.

Almost all provinces saw the Sportage competitor set greatly increase, especially Guangdong, Zhejiang and Beijing which all had both high registrations and high growth. Some provinces also showed great potential demands, such as Jiangsu, Sichuan and Hebei.

120%

Sportage Competitor Set Market Share and YoY Growth by Province(Jan-Sep, 2007)
Tibet QinghaiAnhui Beijing Zhejiang Guangdong

YoY Growth

Hainan

Market Share by Engine in SUV Market
100% 80% 60% 40% 20% 0% 2006(Jan-Sep) 2007(Jan-Sep) 64.0% 4.8% 8.6% 22.5% 4.0% 9.4% 32.4% >4L 3.1-4L 54.3% <=2.0L 2.1-3L

Guangxi Chongqing Hunan Tianjin

Hubei

Hebei

Jiangsu

Shandong

60%
Ningxia

Jiangxi

Liaoning Sichuan Shanghai Fujian Shanxi Jilin Inner Mongolia Xinjiang Henan Guizhou Heilongjiang Shaanxi Gansu Yunnan

0% 0%

4%

Market Share

8%

12%

Model Analysis: Sportage
With the continued booming SUV market, more and more new SUV models have entered this market. Eight imported SUV models and two domestic SUV models have been released so far this year. In October 2007, Kia Sportage was launched by Dongfeng Yueda-Kia, intensifying the competition in the segment with SUV models priced between RMB 150,000 and 250,000.
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PolkInsight is our premium automotive decision support tool. It is a single source that allows our customers to analyze and interpret registration data more effectively. It is relevant to people in a wide range of roles, from market representation to sales planning and parts distribution. PolkInsight China data covers new registrations of passenger vehicles at national, provincial, city, district and postcode level. The data includes detailed information on both domestically produced and imported passenger vehicles, including vans. This unparalleled insight into the Chinese car market is available with monthly values and a history of four complete years.
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